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OAK BROOK, IL, Sept. 25 /CNW/ - Several months ago, the Board of
Directors of Primary Energy Recycling Corporation (TSX: PRI.UN) (the
"Company") initiated a review of strategic options available to the Company to
enhance unitholder value. As part of that review, the Board of Directors
considered the Company's current arrangements with EPCOR USA Ventures LLC
("EPCOR"), including, in particular, the EPCOR Management Agreement. Based on
this review, the Board has decided to initiate a sale process with the full
co-operation of EPCOR, subject to certain terms and conditions and as
previously announced in the joint press release issued by the Company and
EPCOR. In order to facilitate the sales process and attract a broad range of
interested parties, the Board and EPCOR have reached an agreement as to the
terms on which the Company can unilaterally terminate the Management and
Allocation Agreements.
As there can be no assurance that the sale process will result in a
transaction, the Board has also determined that it will internalize management
of the Company if a sale is not consummated.
To facilitate both of these initiatives, the Company has retained Mr.
John Prunkl, former President of EPCOR, under a consulting agreement. Under
the terms of the consulting agreement, Mr. Prunkl has agreed to assist the
Company in connection with the sale process and provide advice on the
development of the Company's internal management capability. Concurrent with
entering into the consulting agreement, Mr. Prunkl resigned as a director from
the boards of each of the Company and its subsidiary, Primary Energy Recycling
Holdings LLC.
The Board is in the process of selecting a financial advisor to conduct
the sale process.
Forward-Looking Statements
When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar expressions are
intended to identify forward-looking statements. Such statements are subject
to certain risks, uncertainties and assumptions pertaining, but not limited,
to operating performance, regulatory parameters, weather and economic
conditions and the factors discussed in the Company's public filings available
on SEDAR at www.sedar.com. These forward-looking statements are made as of the
date of this press release and the Company assumes no obligation to update or
revise them to reflect new events or circumstances, except as required by
applicable law.
About Primary Energy Recycling Corporation
The Company owns a majority interest in Primary Energy Recycling Holdings
LLC ("PERH"). PERH, headquartered in Oak Brook, Illinois, indirectly owns and
operates four recycled energy projects and a 50 per cent interest in a
pulverized coal facility (collectively, the "Projects"). The Projects have a
combined electrical generating capacity of 283 megawatts and a combined steam
generating capacity of 1.8 MMlbs/hour. PERH creates value for its customers by
capturing and recycling waste energy from industrial and electric generation
processes and converting it into reliable and economical electricity and
thermal energy for its customers' use. For more information, please see
www.primaryenergyrecycling.com.